In SIP, you invest a fixed amount of money in a mutual fund of your choice every month. The set up is such that the money is automatically debited from your bank account.

The purpose of a dividend scheme is to earn income in regular intervals through the investment in the form of dividends.

Technically, an investor is allowed to go for an SIP in a dividend scheme. However, doing so essentially defeats the purpose of an SIP, wherein an investor is looking to invest surplus funds periodically.

This forms a cycle, wherein the core purpose of both the options is not fulfilled.

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.